JD Sports Fashion PLC (LSE:JD.)'s latest financial update has prompted UBS to offer a brighter outlook for the sportswear big cap.
The group's fiscal 2024 performance aligned with its prior forecasts, UBS pointed out, with notable strength in Europe and a challenging environment in North America.
UBS's forecast for the fiscal year 2025 suggests an anticipated organic sales growth between 6-9%, with profit before tax (PBT) expectations set between £900 million and £980.
JD Sports’ tone of its outlook for financial 2025 was “cautious”, UBS pointed out, though this was “broadly expected”.
The Swiss bank continued: “Even potential cut to consensus PBT on a pre-accounting changes basis is less bad than expected… particularly in the context of a mixed set of results from JD Sports peers.
“Additionally the decision to increase the frequency of reporting should be taken well by investors.”
In terms of valuation, UBS maintained a 'buy' rating on the stock, setting a 12-month price target of 178p, indicating a potential upside of over 50% from the 116p publication price.